GBP fell during US session on the verge of ending the longest weekly gains in eight months and ending the longest losing streak in nearly a year, rising for the first time in seven months against the US dollar following developments and economic data followed Friday by the Royal Economy British economy and his counterpart the largest economy in the world.
At 04:47 GMT GMT, GBP USD dropped 0.24% to 1.3048 compared with the opening levels at 1.3079 after the pair hit its lowest level since September 12 at 1.3001, while the highest reached during the session At 1.3090.
We followed the RBA reading of the GFK Consumer Sentiment Index, which showed a widening of the decline to 9 vs. 7 in August, worse than expectations for a widening of the decline to 8, before we saw the release of the current account reading which showed a contraction of the deficit To £ 20.3 billion versus £ 15.7 billion in the first quarter, worse than the £ 19.4 billion deficit.
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In the same context, we also followed the disclosure of the final reading of GDP, which showed that the economy expanded by 0.4% during the second quarter, in line with the previous preliminary reading and expectations, versus 0.2% growth in the first quarter. Business expansion was down to 0.7% compared to initial reading expectations at a 0.5% rise, versus a 0.4% drop in the first quarter.
Otherwise, we have followed the talk of Deputy Governor of the Bank of England David Ramsden at the annual press conference of the Association of Professional Economists in London, in which he addressed the fact that the economy needs to gradually increase interest, saying that the labor market in a marked improvement and wages in the rise, And that the movements of the markets reflect investors’ fears of the consequences of Britain’s exit from the European Union.
On the other hand, we followed the US economy to reveal personal income and expenditure data, which showed a slowdown in personal spending growth to 0.3% in line with expectations versus 0.4% in July, while personal income reading showed growth stability at 0.3% The previous reading for July was in contrast to expectations that the pace of growth accelerated to 0.4%.
This was in line with the disappointing PPI reading, which showed a stable growth of 0.1% in line with expectations, unchanged from the previous reading for July, while the annual reading of the same index showed a slower pace of growth to 2.2% 2.3%. The annual reading of the Core Personal Consumption Expenditure Index showed that the stability of the growth rate at 2.0% is also consistent with expectations.
We also followed the world’s largest industrial nation released the Chicago Purchasing Managers Index, which showed a contraction to 60.4 from 63.6 last August, worse than expected at 62.3, and finally showed the University of Michigan’s consumer confidence index narrowed to some extent 100.1 compared to the initial reading of the month at 100.8, worse than expectations at 100.5 and against 96.2 in August.